Chapter 7 ( Assessing and Securing your Credit)

Question 1

funds provided by a creditor to a borrower that will be repaid by the borrower in the future with interest

Answer 1

credit

Question 2

What are three types of credit?

Answer 2

• Non-installment credit
• installment credit
• revolving open-end credit

Question 3

credit provided for a short period, such as department store credit

Answer 3

non-installment credit

Question 4

credit provided for specific purchase, with interest charged on the amount borrowed

Answer 4

installment credit

Question 5

credit provided up to a specified maximum amount based on income and credit history; interest is charged each month on the remaining balance

Answer 5

revolving open-end credit

Question 6

helps protect debtors form unethical creditors

Answer 6

equal credit opportunity act

Question 7

• regulates online checking accounts, credit cards, and student loans
• to ensure accurate consumer information and prevent deceptive practices
• may also regulate credit rating bureaus

Answer 7

financial reform act of 2010

Question 8

• often begins with timely payment of utility bills

- build by paying bills in a timely manner

Answer 8

credit history

Question 9

can cover payments under adversed conditions

Answer 9

credit insurance

Question 10

proved credit reports documenting your credit payment history

Answer 10

credit bureaus

Question 11

reports provided by credit bureaus to document a person’s credit payment history

Answer 11

credit report

Question 12

What are the primary bureaus?

Answer 12

• Equifax
• Experian
• TransUnion

Question 13

score affected by many factors

Answer 13

• credit payment history (35% of score)
• credit utilization (30% of score)
• credit history (15% os score)
• new credit (10% of score)
• different types of credit (10% of score)

Question 14

credit score range

Answer 14

350 to 850 with 600 being considered a good score

Question 15

What is the recommended amount of times you can request your credit report?

Answer 15

at least twice a year

Question 16

theft that occurs when an individual, without permission, uses your identifying information for his or her personal gain

Answer 16

identity theft

Question 17

tactic used when an identity thief stands close to you in a public place and rads the number of your credit card as you conduct business

Answer 17

shoulder surfing

Question 18

tactic used when an identity thief goes though your trash for discarded items that reveal personal information that cane be used for fraudulent purposes

Answer 18

dumpster diving

Question 19

tactic used when store employee steals your credit card number by copying the information contained in the magnetic strip on the card

Answer 19

skimming

Question 20

tactic used when an identity thief poses as an employee of a company with which you conduct business, to solicit your personal information

Answer 20

pretexting

Question 21

tactic used when protecting happen online

Answer 21

phishing

Question 22

similar to phishing, but targeted to larger audiences; tactic that directs users to bogus web sites to collect their personal information

Answer 22

pharming

Question 23

• remove items containing SSN from purse/wallet
• document your accounts
• buy a shredder and use it
• do not have SSN printed on your checks
• remove your name and address from phone directories
• install a locked mailbox or rent a P.O. box
• shop online only on secured sites
• be suspicious of phone callers seeking personal information
• mail all bills with account information in a U.S. Postal service depository box
• scrutinize bank and credit card statements
• be careful using hand held or cell phones when ordering merchandise
• be aware of delivery schedules
• never have personal checks delivered to your home
• protect home computer from hackers
• have mail held at the post office when on vacation

Answer 23

Shielding personal information at home

Question 24

available as part of homeowner or renter policies or as a stand alone policy

Answer 24

identity theft insurance

Question 25

• take immediate action
• maintain a record of all phone calls and correspondence
• contact the police
• contact federal trade commission
• contact credit reporting companies
• contact creditors and others who may be impacted

Answer 25

response to identity theft